Senator Joe Manchin has said he will vote ‘no’ for President Biden’s Build Back Better act. This plan had provided billions of dollars for incentives to encourage electric vehicle production and sales. It could have greatly benefited the sector. With the spending plan dropped and the persisting supply chain disruptions, it might be best to avoid EV stocks Tesla (NASDAQ:), Rivian (RIVN), Lucid Group (LCID), and Fisker (FSR).Democratic Senator Joe Manchin from West Virginia has decided to vote ‘no’ on the Build Back Better act, pulling the plug on the negotiations on the present version of the legislation expanding the country’s social safety net. Senator Manchin expressed concern over some provisions in the spending plan for $1.9 trillion and suggested that they may exaggerate inflation.

The negative vote on the bill puts the Biden administration’s ambitious climate goals on hold. This package provided tax incentives worth more than $300 million for electric cars (EVs), and other clean-energy measures. The bill included an additional $12,500 tax credit that is refundable for electric vehicle purchases. However, in the present situation, for the bill to pass, every Democrat needs to vote ‘yes’ on it, as there is no Republican support for it.

The supply chain issues and semiconductor shortages will put pressure on profits. EV stocks Tesla, Inc., Rivian Automotive, Inc., (RIVN), Lucid Group, Inc., (LCID), Fisker Inc., (FSR), are best avoided right now.

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